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enfold_admin2025-05-27 06:57:292025-05-27 06:59:25Why opening a business in Hungary is a smart move for foreign investorsWhy opening a business in Hungary is a smart move for foreign investors
Hungary is becoming a leading destination for foreign entrepreneurs who want to expand their business in the European market. With its investor-friendly climate, low corporate tax, and central location, it’s no wonder many international businesspeople are choosing to
Strategic location and EU access
Hungary is centrally located in Europe and part of the European Union. Businesses based in Hungary enjoy direct access to the EU’s single market, making it an excellent launchpad for reaching over 450 million consumers. Its well-developed infrastructure supports trade across both Western and Eastern Europe.
Low tax rates and financial incentives
Hungary offers the lowest corporate tax rate in the EU at just 9%. Personal income tax is also flat at 15%. These rates allow entrepreneurs to maximize profits. On top of that, Hungary offers various tax benefits, R&D credits, and government incentives for sectors like IT, manufacturing, and agriculture.
Cost of opening a business in Hungary
One of the key advantages of opening a business in Hungary is the affordability. The cost of forming a limited liability company (Kft.), the most common type for foreign investors, typically includes:
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Company registration and legal fees: €600 to €1,200 (including lawyer and notary services)
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Minimum share capital: €2,000 (about HUF 1 million), which does not need to be deposited upfront in cash
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Bank account opening: Often free or with minimal charges, depending on the bank
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Registered office and virtual address services: €300 to €600 annually
All in all, the total initial cost to open a business in Hungary can start from as low as €1,000 to €2,000 depending on the chosen service provider and specific business needs. Compared to Western Europe, this is an economical choice with fast setup times.
Simplified registration and fast setup
The process of registering a company is efficient. Most businesses can be registered within 4–5 working days. The Hungarian system supports online registration, and most documentation is available in English. Foreign nationals are not required to be physically present during incorporation if they appoint a local legal representative.
Skilled workforce and low operational costs
Hungary has a highly educated and multilingual labor force. Salaries remain lower than in Western Europe, making operations cost-effective without sacrificing quality. This is particularly beneficial for sectors like IT, customer service, engineering, and logistics.
Residency and visa options
When you open a business in Hungary, you also unlock opportunities for residency. Business owners and directors can apply for residence permits, which often include family reunification options. This makes Hungary not only a great business base but also a welcoming place to live.
Whether you’re a startup founder or a seasoned investor, opening a business in Hungary offers many strategic and financial benefits. With low costs, minimal bureaucracy, and excellent access to the European market, Hungary is an ideal destination for international entrepreneurs. Now is the perfect time to open a business in Hungary and take advantage of what this dynamic economy has to offer.
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enfold_admin2025-05-27 06:57:292025-05-27 06:59:25Why opening a business in Hungary is a smart move for foreign investors
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enfold_admin2025-01-18 18:59:432025-02-22 11:56:30What are the costs of company formation in Hungary?
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enfold_admin2024-04-14 17:30:402025-02-22 11:56:57Corporate tax rate in Hungary